{
  "url": "https://openlegislation.uk/eu-decision-2014-341/annex/division-n2/division-III/division-4/division-4.2/division-4.2.3/division-4.2.3.2",
  "json_url": "https://openlegislation.uk/eu-decision-2014-341/annex/division-n2/division-III/division-4/division-4.2/division-4.2.3/division-4.2.3.2.json",
  "legislation": "eudn/2014/341",
  "legislation_title": "Commission Decision of 3 September 2013 State aid SA.32554 (09/C) Restructuring aid for Hypo Group Alpe Adria implemented by Austria (notified under document C(2013) 5648) (Only the German text is authentic) (Text with EEA relevance) (2014/341/EU)",
  "legislation_url": "https://openlegislation.uk/eu-decision-2014-341",
  "path": "annex/division/n2/division/III/division/4/division/4.2/division/4.2.3/division/4.2.3.2",
  "kind": "division",
  "number": "4.2.3.2",
  "heading": "Limitations/Exclusions",
  "text": "The following risk-relevant transactions are to receive specific treatment:\nAll offers on retail loans made to clients before 1 January 2013are not subject to the restrictions on new business, provided that they are accepted by the client within the acceptance period as determined by the laws in the relevant country. Offers made after 1 January 2013 must comply with the commitments under point 4.1.\nRetail loans made using funds from development banks and supranational financing institutions (e.g. EIB, EBRD, HBOR, SID, etc.) and subsidised loan programmes supported by sovereign/sub-sovereign lending or insurance agencies or public funds are not subject to the restrictions on new business.\nRestructuring of retail loan or lease contracts, if they were provided to natural persons (private clients) with a maximum amount of EUR […], are not considered new business, as long as the exposure is not increased. The following principles must be observed:\nRestructuring should always be net-present-value neutral (NPV-neutral);\nIn the course of a restructuring, exposure to a client may NOT be increased;\nNo new money may be disbursed to the customer during the restructuring process or under the restructured obligation;\nRestructuring of a retail client may take place only if the client demonstrates the ability and willingness to repay the restructured obligation;\nClients being sued (by a third party), subject to legal enforcement measures, or otherwise having limited legal capacity because of a statutory procedure may not be restructured.\nIf the client is not a natural person (private client) but an SME (business client) and hence not subject to the above eligibility criterion, the restructuring rules (recovery maximisation) and maturity limitations for corporate clients will apply.\nCross-segment migration of existing exposure without any exposure increase is not considered new business. This in particular affects exposure on project financing (e.g. construction of apartments) made by the corporate segment, which is ultimately covered/paid back by retail clients, for example when they take up loans for the purchase of the apartments. In this case, the exposure has effectively migrated from the corporate segment to the retail segment. However, the following limitations apply:\nThe maximum permissible LTV is […] %, and\nThe maximum annual volume of new business is limited to […] % of the annual volume of new retail mortgage business within each country.\nIncreases in the total exposure of retail loans due to interest, fees or other forms of debt capitalisation (mostly in the context of non-performing loans or restructurings) are not considered to be new business.\nDebt consolidation for retail clients (within HGAA booking entities or groups of accounts) is considered to be part of restructuring if the related exposure is limited to EUR […] (EUR […] in Croatia, if accepted by the Monitoring Trustee, see 4.2.1.3). If the exposure is larger, the maturity limitations for corporate clients will apply.\nHowever, if the new consolidated loan is granted in the form of a retail loan, and the exposure is (substantially) higher than the sum of exposures of the consolidated loans, the difference in exposure is deemed to be new business, in accordance with 4.2.3(ii) and (iii). Until the reporting capabilities are in place, however, 4.2.3.1(i) applies.\n‘Loan top-ups’ on retail loans are not to be considered new business, if the option to top up was explicitly granted in the original loan agreement, could not be cancelled by HGAA and was subject only to the client meeting certain loan covenants, although without the client having to go through a standard loan appraisal. In the case of other forms of top-ups on retail loans, the difference between the old loan amount and the new loan amount is considered to be new business in accordance with 4.2.3(ii) and (iii). Until the reporting capabilities are in place, however, 4.2.3.1(i) applies.\n‘Currency switches’, i.e. a retail client switching from a foreign-currency denominated loan (or foreign-currency indexed loan) to a local-currency denominated loan, without a substantial increase in exposure (up to EUR […]), are not considered new business. In the event of a substantial increase in exposure, the difference between the old loan amount and the new loan amount is considered new business in accordance with 4.2.3(ii) and (iii). Until the reporting capabilities are in place, however, 4.2.3.1(i) applies.\nRetail loans granted for the re-marketing or re-leasing of repossessed assets/collaterals are not considered new business, although the following limitations apply:\nFor the re-marketing of apartments and other real estate, the maximum permissible LTV is […] % and the maximum annual volume of new business is limited to […] % of the annual volume of new retail mortgage business within each country.\nFor vehicles and equipment, the maximum annual volume of new business is limited to […] % of the annual volume of new retail vehicle and equipment business within each country.\nFulfilment of existing contracts and commitments (e.g. real estate under construction, activation of leases to go) is not considered to be new business.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/eudn/2014/341/annex/division/n2/division/III/division/4/division/4.2/division/4.2.3/division/4.2.3.2",
    "retrieved_at": "2026-11-01T15:14:45.373906+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}